ETX Capital vs FXDD

If you're choosing between ETX Capital and FXDD, we've compared hundreds of data points side-by-side to make finding the right broker for you easier.
We've also displayed one of our most popular brokers, XTB, as another alternative to consider.

All information collected from www.xtb.com.
Last updated on 01/06/2020.

Company

Used by over 51,000 traders, ETX Capital are a well-established spread betting broker.

ETX Capital offer over 50 currency pairs, and are renowned for their tight spreads starting from 0.7 for EUR/USD (you can see their spreads here). They offer a range of platforms with fixed or variable spreads to suit your trading style.

ETX Capital were established in 2002 and have been servicing traders for over a decade. They are regulated by the UK's Financial Conduct Authority. You can start trading with ETX Capital here.For more information about trading with ETX Capital, we have put together an indepth ETX Capital review with some of the pros and cons about this broker.

FXDD is a trusted online broker regulated by multiple authorities around the world including the Financial Conduct Authority in the UK. FXDD offer customised solutions to everyone from retail traders, hedge fund managers to white label products. Their global reach and state of the art technology have enabled FXDD to outgrow other brokerages and become a global force in Forex trading. They provide customer service in 13 languages and have a devoted client service no matter the size of the trader. FXDD also provide comprehensive training to cater for all levels of traders and hold daily interactive classes taught by expert analysts on top of the web based tools including trading calculators. They provide two simple pricing models, standard and ECN. Standard offers low spreads with no commissions and guaranteed zero slippage. ECN provides low direct raw spreads with no markups and a small $2.99 per standard lot commission with a 99% fill rate.

XTB operates with two factors in mind; to provide traders with the fastest execution speeds and to be the most transparent broker on the market, which is reflected by the services and products they provide.

XTB also have a dedicated education area - the Trading Academy - which contains material to help you become a better trader, including video tutorials, trading courses, articles and much more to improve your skills at every step of your trading journey.

If you are looking for a broker that is regulated by the Financial Conduct Authority and focuses on transparency, fast execution speeds and customer service, XTB is a great option.For more information about trading with XTB, we have put together an in-depth XTB review covering the pros and cons of this broker.

ETX Capital or FXDD?

Low spreads or accepts Scalping?

If you’re a trader looking for a broker with low spreads on popular instruments like EUR/USD, ETX Capital is likely a better option. However, if you want a broker that allows you to scalp as a trading strategy, FXDD may be more suitable.

Which broker is more reliable?

You can determine a broker’s reliability & trustworthiness by looking at eight factors:

Who are they regulated by?

How long have they been around for?

Do they hold your money in a separate bank account?

Do they use reputable “tier-1” banks like Barclays, Goldman Sachs or HSBC?

Have they been fined or penalised in the last five years?

The popularity of their service/website

Are they publicly listed?

Where are they located?

Based on these eight factors, we consider ETX Capital to be the more reliable broker. We’ve broken down why below:

Who are they regulated by?

ETX Capital is regulated by Financial Conduct Authority, while FXDD is regulated by MFSA.

As the Financial Conduct Authority are one of the most stringent regulators in the world, ETX Capital will have very strict guidelines to follow to ensure they protect their retail trader clients.

XTB are also regulated by the Financial Conduct Authority.

How long have they been around for?

If a broker has been around for a long period of time, they’re likely to be more reliable (in comparison, most scam brokers only exist for several years before they disappear).

This also suggests that a broker has good risk management processes that have prevented them being caught out by major financial events,
as was the case with Alpari UK going bust when they were there was a policy reversal of capping the Swiss Franc against the Euro.

ETX Capital has been around for 18 years, while FXDD have been around for 18 years.
Our third alternative broker, XTB, have been around for 18 years.

Do they hold your money in a separate bank account?

You wouldn’t want your broker paying their staff out of the same bank account account that you’re depositing your trading funds into, would you?

Fortunately, all regulated brokers must use segregated bank accounts to hold client money. This is one of the reasons why we only feature regulated brokers here on BrokerNotes.

All three brokers above will hold your money in a separate bank account.

Do they use reputable “tier-1” banks like Barclays, Goldman Sachs or HSBC?

Most tier-1 banks like Barclays and HSBC have been around for over 100 years and manage trillions of dollars of assets, proving that they have stood the test of time.

Both ETX Capital and FXDD use tier one banks, but we are not sure of which bank specifically.

Have they been fined or penalised in the last five years?

If a broker has been penalised by a regulator in the past five years, it may mean that they were caught doing something they shouldn’t be doing - which may be of concern to you as an end client.

We’re not aware of any penalties or fines imposed by regulators on ETX Capital or FXDD in the past five years.

How popular is their service/website?

While not always the case, the number of traders a broker has can be a good metric for understanding how reputable a brokers is.

Are they publicly listed?

Companies that are publicly listed on a stock exchange tend to be considered more reputable as they will be required to disclose their financials, and aspects of their operations, to the public.

Both ETX Capital and FXDD are privately owned companies.

Where are they located?

Most reputable brokers tend to be headquartered in a major capital city or a financial hub such as Cyprus.

ETX Capital are based in One Broadgate, London. EC2M 2QS, while FXDD are based in Floriana, Malta .

Do they offer the features you need?

Assuming the brokers you’re choosing between are reputable, the next point to consider is whether they offer all of the features you require to trade.

This can be broken down into three categories:

Services & instruments

Platforms & account types

Trading features, risk management tools & funding methods

Services and Instruments

If you’re looking to trade currency pairs,
both ETX Capital and FXDD offer forex trading. ETX Capital have a slightly larger variety of currency pairs with 60 pairs, compared to offered by FXDD. Also, if you’re looking to trade cryptocurrencies,
ETX Capital offers a handful of cryptocurrency CFDs to trade, including Bitcoin, Ethereum and Ripple.

If you’re looking to trade commodities like gold, silver or oil, ETX Capital may be a better fit as FXDD does not offer commodity trading.

ETX Capital and FXDD both offer social trading, which is a modern approach to trading that allows you to follow like-minded traders, copy their trading activity, and engage in discussion around trading strategies.

Platforms & Account Types

If you trade forex, there’s a good chance you might want a broker that offers the popular MT4 trading platform. If that’s the case, both ETX Capital and FXDD offer this. Our alternative broker, XTB, also offers MT4 and MT5.

In addition to the platform, you’ll also want to ensure that the broker you choose offers the account type best suited to your needs.
ETX Capital, for example, offer a mini account, standard account and VIP account.

Trading features, risk management tools & funding methods

If you have a certain trading style (e.g. scalping, hedging, or using EAs), you’ll want to double check that the broker you choose allows this, as not all of them do.

ETX Capital does not allow scalping but allows hedging. While FXDD also allows scalping but doesn't allow hedging. You can trade with EAs (expert advisors) on both ETX Capital and FXDD.

ETX Capital also offer stop losses, limit orders, and price alerts to help you automate aspects of your trading strategy.

ETX Capital accept Neteller.

Are they affordable for what you need?

Comparing the fee structures of different brokers can be a minefield at times. The important thing to consider is what the spreads & fees are on the specific instruments and account type that you will be using.

For trading EUR/USD, ETX Capital charges 0.60 points, while FXDD charges 0.50 points.
Therefore, FXDD is the more affordable for this instrument. If you want to compare their spreads across more instruments, You can jump back up to our comparison of their currency pair & indice spreads above.

Another consideration is whether or not your broker charges inactivity, deposit/withdrawal fees, or commissions on trades. If you’re a frequent trader, inactivity fees are unlikely to be an issue.

The Verdict: ETX Capital or FXDD?

There’s no such thing as a perfect broker, but some are going to be a better fit for you than others.

Objectively, ETX Capital is more reliable based on our criteria above. ETX Capital has a wider range of instruments to trade. ETX Capital offer lower spreads on popular forex instruments like EUR/USD and are used by more traders.

Both brokers offer demo accounts, allowing you to test their platforms to see which is suitable for you. You can test drive their demos using the links below:

Company

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